OTCQX:VLNCF - Post by User
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mesa1on May 19, 2021 11:00am
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FP/wire say Valens has high hopes for Green Roads buy ...
FP/wire say Valens has high hopes for Green Roads buy ... FP/wire say Valens has high hopes for Green Roads buy
2021-04-28 04:43 PT - In the News
The Financial Post reports in its Wednesday edition that Valens has signed a deal to buy Florida-based Green Roads as part of its initial expansion into the United States. A Bloomberg dispatch to the Post says that Valens, based in Kelowna, B.C., will acquire the company for $40-million (U.S.) in cash and stock, plus $20-million (U.S.) if earnings-based targets are met. Green Roads sells products with cannabidiol, or CBD -- the non-psychoactive compound in the marijuana plant -- on-line and through 7,000 retail locations. The deal will allow Valens to immediately enter the U.S. CBD market. The combined company would have had sales of $111.6-million in 2020. Valens generated revenue of $83.8-million in its last fiscal year. Valens chief executive officer Tyler Robson said in a statement that the deal "will help us create an attractive platform in a growing health and wellness market." The deal is expected to be accretive to earnings in 2021. The Green Roads brand had the second-largest share of the U.S. CBD market in last year's third quarter, according to the companies. Valens shares moved up on the news. They ended Tuesday up 15 cents at $3.43 in Toronto. Marijuana remains illegal at the U.S. federal level.